Hutchison Port Holdings Trust - Annual Report 2015 - page 117

30 FINANCIAL RISK AND CAPITAL MANAGEMENT ŸCONTINUED¡
(g) Fair value estimation
The table below analyses recurring fair value measurements for financial assets/(liabilities). These fair value measurements
are categorised into di erent levels in the fair value hierarchy based on the inputs to valuation techniques used. The di erent
levels are defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either
directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3: Inputs for the assets or liabilities that are not based on observable market data (i.e. unobservable inputs).
Level 1 Level 2 Level 3 Total
Note HK$’000 HK$’000 HK$’000 HK$’000
At 31 December 2015
Listed equity security 17 60,413 - - 60,413
River Ports Economic Benefits 17 - - 518,600 518,600
Fair value hedges on interest rate swaps 24 - (38,784) - (38,784)
60,413 (38,784) 518,600 540,229
At 31 December 2014
Listed equity security 17 58,388 - - 58,388
River Ports Economic Benefits 17 - - 740,000 740,000
58,388 - 740,000 798,388
The fair value of financial instruments that are not traded in active market (level 3) is determined by discounted cash flow
analysis with reference to inputs such as dividend stream.
During the years ended 31 December 2015 and 2014, there were no transfers between the Level 1, Level 2 and Level 3 fair
value measurements.
At 31 December 2015, the fair value of bank and other debts (note 22) was HK$32,989.3 million. The carrying amounts of the
remaining financial assets and financial liabilities approximate their fair values.
The movements of the balance of River Port Economic Benefits which is categorised into Level 3 are as follows:
2015 2014
HK$’000 HK$’000
At 1 January 740,000 775,000
Valuation losses taken to reserves (29,700) (35,000)
Derecognition (191,700) -
At 31 December 518,600 740,000
Changing unobservable inputs used in Level 3 valuation to reasonable alternative assumptions would not have significant
impact on the Group’s profit or loss.
Notes to the
Financial Statements
115
ANNUAL REPORT 2015 HUTCHISON PORT HOLDINGS TRUST